business tip #4 profitable estimating from strategic landscaper

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Business Tip #4

Business Tip #4- Profitable Estimating

Profitable Estimating

StrategicLandscaper.Com

Presented by: Matt Hudson

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Part 4- Profitable Estimating

Purpose: An Overview of Different Estimating

Systems and How To Take Control of Your Business

Business Tip #4- Profitable Estimating StrategicLandscaper.Com

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Take Time To Educate Yourself on Different Estimating Methods

Don’t Assume!


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Ask Yourself:

“What Estimating Method Am I

Using Now, Where Did I Learn It &

How Do I Know It Works?”Business Tip #4- Profitable Estimating StrategicLandscaper.Com

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Foundation: You Must Know Your Numbers

Annual BudgetCompany P&L

Project / Account P&LEstimating


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Run Your Business From Your

Estimating Sheet


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There Are Many Estimating

Systems:


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Systems:• Factoring- Materials Multiplied


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• (SORS) Single Overhead Recovery System


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• (SORS) Single Overhead Recovery System• (MDUP) Market-Driven Unit Pricing


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• (DORS) Dual Overhead Recovery SystemBusiness Tip #4- Profitable Estimating StrategicLandscaper.Com

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• (DORS) Dual Overhead Recovery System• (MORS) Multiple Overhead Recovery SystemBusiness Tip #4- Profitable Estimating StrategicLandscaper.Com

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• (DORS) Dual Overhead Recovery System• (MORS) Multiple Overhead Recovery System• (OPPH) Overhead & Profit Per Hour


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Your Estimating Process Should Tell You Three Things:


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1. Breakeven Point


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1. Breakeven Point2. Net Profit


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1. Breakeven Point2. Net Profit3. Process & Schedule


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First Step:

Create Your Annual Budget


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First Step:

Create Your Annual Budget• Identify Costs For The Year; Historical &

Estimated


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First Step:


Estimated• Use When Recovering Labor & Overhead


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First Step:


Estimated• Use When Recovering Labor & Overhead• Used To Determine Your Profit Margin


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First Step:


Estimated• Use When Recovering Labor & Overhead• Used To Determine Your Profit Margin


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Second Step:

Identify Which Estimating System

You Are Going To Use & WHY


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Second Step:Identify Which Estimating System

You Are Going To Use & WHY

(OPPH) Overhead & Profit Per Hour


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Third Step:

Identify Project Breakeven Point


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Breakeven Point=


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Breakeven Point=• Total Direct Costs:


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Breakeven Point=• Total Direct Costs: • Materials (w/tax)


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Breakeven Point=• Total Direct Costs: • Materials (w/tax)• Labor (w/labor burden)


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Breakeven Point=• Total Direct Costs: • Materials (w/tax)• Labor (w/labor burden)• Equipment


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Breakeven Point=• Total Direct Costs: • Materials (w/tax)• Labor (w/labor burden)• Equipment• Subcontractors


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Breakeven Point=• Total Direct Costs: • Materials (w/tax)• Labor (w/labor burden)• Equipment• Subcontractors

• General & Administrative Overhead CostsBusiness Tip #4- Profitable Estimating StrategicLandscaper.Com

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Fourth Step:

Add Your Profit Margin on Top


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Fifth Step:

Convert the Estimate Into

A Process & Plan


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Sixth Step:

Implement Job

Track All Data

Analyze Estimated vs. ActualBusiness Tip #4- Profitable Estimating StrategicLandscaper.Com

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Seventh Step:

Adjust Accordingly


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Estimating Takeaways:



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Estimating Takeaways: • Profitable estimating is vital



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Estimating Takeaways: • Profitable estimating is vital• Puts you in control of your

business



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business• Makes you more competitive



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business• Makes you more competitive• Imperative for long term success



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Action Steps: Part 4- Profitable Estimating


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Action Steps: 1. Get Clear



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Action Steps: 1. Get Clear2. Identify An Estimating System



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Action Steps: 1. Get Clear2. Identify An Estimating System3. Implement It



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Action Steps: 1. Get Clear2. Identify An Estimating System3. Implement It4. Test It



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Action Steps: 1. Get Clear2. Identify An Estimating System3. Implement It4. Test It5. Grow



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Be On The Lookout For:

Part 5- Developing A Sales

System


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We Would Love To Hear From You:Send Us An Email

Feedback ● Questions ● Anything

[email protected] Our Conversation


business tip #4 profitable estimating from strategic landscaper

Business

estimating process

estimating sheet business

business business tip

hour business tip

breakeven point business

net profit business

factoring materials

matt hudson